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Alex73 [517]
3 years ago
6

Target Costing Portland Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has

determined that the company could sell 6,000 log-splitting machines per year at a retail price of $850 each. An independent catalog company would handle sales for an annual fee of $6,000 plus $59 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $95 per unit. If company management desires a return equal to 10 percent of the final selling price, what is the target conversion and administrative cost per unit? Round answer to the nearest cent.
Business
1 answer:
sergiy2304 [10]3 years ago
7 0

Answer:S 610

Explanation:

To get a return of 10% of sales price is to have a profit of S85 which is 10% of S850.

Handling cost per unit S6000/6000 unit=S1

Other handling cost per unit S59

Raw materials per unit=S95

Target conversations and administrative cost is

850-X-60-95=85

850-X-155=85

-X=85+155-850

-X=-610

X=610

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3 years ago
Based on the graph below, if January and February are the two coldest months, what can you conclude about the selling of French
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Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

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Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

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3 0
2 years ago
Penny Smooth, a U.S. trade negotiator, is using which conflict resolution technique if she makes the following statement to the
otez555 [7]

Answer:

E) Superordinate goals

Explanation:

Superordinate goals refers to goals that in order to be achieved, require that opposing or confronting sides of a negotiation process start to work together. Penny must be able to break down barriers in order to encourage people on opposite sides to view each other as people wanting to work and a company trying to do business, instead of someone or some group that we just dislike. That is essential for overcoming the differences that exist between both groups.

3 0
3 years ago
Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a parti
artcher [175]

Amount to be credited = $2,020

Outstanding balance = $480

Explanation:

The payment terms state that

  • 3% discount may be taken within 10 days of the invoice date (up to May 20); or  
  • 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
  • The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
  • The  3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.

Amount to be credited

= 2000 / (1−0.01)

= 2000 / (0.99)

= $2,020

Outstanding balance

= 2500 - 2020

= $480

3 0
3 years ago
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